EUROZONE ON BRINK: Brussels panic as Italy and Spain STILL suffering from financial crisis

EUROZONE ON BRINK: Brussels panic as Italy and Spain STILL suffering from financial crisis

EUROCRATS have named and shamed the weakest economies of the bloc, warning Italy and Spain are still struggling to recover from the 2008 financial crisis - a slowdown that could put at risk the survival of the bloc itself.

The European Central Bank (ECB) has released a new “economic bulletin” in which it said Rome and Madrid ”have not yet shown a complete recovery” from the economic crisis that almost brought them to their knees a decade ago.

In these southern European nations, the real income from employees still "remain significantly lower than before the crisis due to the wage moderation induced by the crisis and unemployment remained at high levels”, the report read.

Yet, the report added, Rome and Madrid have been “trying to increase income and consumption levels”.

In fact, in the last five years, the most vigorous growth recorded in the whole eurozone has been observed in Spain.

The ECB highlights in its new report that Italy and Spain haven't yet recovered from the 2008 crisis (Image: GETTY)

Between the first and second quarter of 2018, the area has increased of just 0.3 percent.

This growth is not only weaker than forecasted but represents the lowest figure since the second quarter of 2016.

This slowdown comes weeks after the ECB announced it would end the helping measures it took following the 2008 financial crisis.

Last June, the central bank said it would cut the bonds it bus each months under the crisis-support programme from £26.70bn (€30bn) to £13.35bn (€15bn), before calling time on the programme at the end of the year.